Knight Frank released its recent Prime Waterfront Index, which measures the potential value increase for prime homes near the waterfront.

Prices for prime UK waterfront properties are as much as 80 per cent higher than comparable properties inland, rising to 133 per cent for properties with a private slipway, according to a recent report.

Knight Frank released its recent Prime Waterfront Index, which measures the potential value increase for prime homes on the water’s edge, or close to water, compared with similar properties located further inland without access to, or a view of, water.

Properties with a private mooring or pontoon can see the waterfront premium rise to 121 per cent and 120 per cent respectively, while jetties and private beach access can add up to 110 per cent and 96 per cent.

In terms of location types, homes situated on estuaries command the largest increase of up to 108 per cent compared with a similar property inland. 

The value of prime harbour side properties can reach up to 107 per cent due to their rarity, and prime coastal properties are worth up to 77 per cent more.

Heading away from the sea, lakeside homes are 50 per cent more expensive than their waterless equivalent, and being next to a river can add up to 76 per cent to the value of a prime residential property.

Southern appeal
The data shows that not all prime waterfront properties are equal, however, and much like the diverse nature of waterfront property across the UK, premiums vary by location and amenity. 

The cliffs, coves and sailing havens of the South West can command the largest premiums of up to 105 per cent. 

East Anglia follows with a premium of 51 per cent. The South East comes next, at 46 per cent. In Scotland, the premium is 44 per cent, and in Wales 25 per cent.

The fall in the value of the pound versus other currencies following the EU Referendum has benefitted non-sterling denominated purchasers, with agents noting that demand among expat purchasers has been particularly strong.

“Despite relatively higher purchase prices, the lure of the water remains as strong as ever. The number of new prospective buyers looking to purchase a waterfront property increased by 24 per cent in 2017 compared to the previous year, according to our figures,” said Oliver Knight, research associate at Knight Frank. “Sales volumes were up by 8 per cent. However, the average price of a home sold by the water in 2017 by Knight Frank was just under £1 million ($1.32 million) , a slight decrease on the long-term average."

Knight added: ‘The figures are underpinned by the fact that the most desirable coastal towns and cities across the UK hold a global appeal, something that can help shelter such markets from any localised uncertainty. Our web-search data shows that individuals from all over the world searched for prime waterfront property in the UK last year, led by potential buyers in the US, Canada, Australia and Germany.”